(News Bulletin 247) – Two minority shareholders accuse the management of the tricolor distribution group of stock market and financial manipulation. Complaints have been filed with the National Financial Prosecutor’s Office.

Two minority shareholders of Casino filed a complaint in February with the National Financial Prosecutor’s Office (PNF), accusing the management of the group of financial and stock market manipulation, in particular for the benefit of its boss Jean-Charles Naouri, according to the complaints consulted on Wednesday by AFP , confirming information from Point.

The first complaint was filed on February 17 by Pierre-Henri Leroy, minority shareholder of the group and president of the consulting firm Proxinvest. It denounces potential misuse of corporate assets, price manipulation and dissemination of misleading information. Pierre-Henri Leroy also asks to investigate possible abuse of power and corporate assets directly attributable to Jean-Charles Naouri.

The second complaint, for suspicion of fraud in judgment, was filed on February 21 by Xavier Kemlin, a small historical shareholder and descendant of the founder of Casino.

Asked Tuesday evening by AFP, Casino said it was waiting for the decision of the PNF to take up the complaints or not.

Uncover “a number of stock market and financial violations”

Lawyer for the two plaintiffs, Me Thomas Amico, indicated that his clients “have been asking questions for a long time about the legality of certain practices” within the group, “particularly in connection with the safeguard procedure”.

They believe that an investigation “could uncover a number of stock market and financial violations to the detriment of the group, its shareholders, its suppliers and its employees”. Pierre-Henri Leroy criticizes in particular Jean-Charles Naouri for having invoiced “services to all the subsidiaries of the group” via the company Euris, owned by the latter.

The shareholder suspects that “the services invoiced are only a disguised means of raising cash which ultimately benefits Jean-Charles Naouri via the payment of dividends”, which he estimates at 5.5 million euros on the last ten years.

A lie about the existence of a line of credit?

In addition, Pierre-Henri Leroy accuses management of having lied about the existence of a credit line of 500 million euros in 2018, to reassure the financial markets. Casino’s parent company, Rallye – owned by Jean-Charles Naouri – brings together a cascade of holding companies (Foncière Euris, Finatis and Euris), heavily indebted.

Rallye benefited in May 2019 from the opening of a safeguard procedure, which constitutes, for Xavier Kemlin, a possible fraud in judgment.

He believes that Rallye’s over-indebtedness should have led to “judicial redress with de facto divestiture of Mr. Jean-Charles Naouri from the administration of the group”, details the complaint.

In 2019, Rallye had a debt of 3.2 billion euros and Casino of 7.6 billion euros, according to the plaintiffs.

(With AFP)